Revenue Expenditure

Introduction

• Revenue expenditure is the expenditure incurred by the government to meet its day to day needs and does not create any productive assets. 
• Revenue expenditure is basically a short-term expenditure of the government which covers the on-going operation expenses of running government business.
• It is a one time payment which means the government cannot recover the spent money.
• Revenue expenditure is recurring in nature.

Coverage under Revenue Expenditure

• It includes Interest payments, expenditure on defence and police, subsidies, salaries and pensions. 
• Other expenditures such as Grants to the states, union territories and foreign countries, social services like expenditure on education, health, social security and poverty alleviation, economic services like non-capital expenditure on agriculture, industry, power, transport and communication and other general services like expenditure on tax collection, managing external affairs, etc. are also the parts of revenue expenditure.